Danish Crown cuts pork processing capacity

Danish
Crown has reduced its slaughterhouse capacity by a total of 30% in these weeks
to adjust to the strongly lowered supply of finishers.

Last week, the company reduced its processing capacity
by 10% and it will reduce its capacity with a further 20% in the next
week.

Danish Crown said it is only a temporary measure. The company
expects supplies to grow again in the near future. Despite that, Danish Crown
admitted that the readjustment reflects that downward tendency throughout Danish
pig production.

Smaller
This spring, the total Danish pig herd
was about 10% smaller than last year - signs of a long-lasting and deep crisis
in the pig industry, according to market analysts.

A Danish Meat
Association spokesman added that consequences of reduced supplies will be felt
extra strongly when warm weather continues, causing pigs to grow less fast. In
addition, hopes of better pigmeat prices in the near future causes producers to
wait longer before sending their pigs to slaughter. A lot of take-overs are
taking place at the moment.